0IR4 Auga Group Ab

Under the base prospectus for bonds approved by the Bank of Lithuania on 25 November 2019 (hereinafter – the Prospectus), AUGA group, AB (hereinafter – the Company) has issued bonds with a total nominal value of EUR 20,000,000. Among other provisions, the Prospectus stipulates financial covenants including: i) an interest coverage ratio of no less than 2, and ii) a consolidated equity to assets ratio of no less than 30% (hereinafter – the Financial covenants).

These Financial covenants are calculated each year on the basis of the audited annual financial statements. If the Company does not meet the Financial covenants, the Prospectus envisages a remediation period of 6 (six) months, during which time such non-compliance with the Financial covenants is not considered an event of default for breach of obligations.

On 30 April 2024 the Company published its audited financial statements for the year 2023. In them, it disclosed that the Financial covenants were not met and so, together with the bond holders’ trustee AUDIFINA, UAB (hereinafter – the Trustee), noted that fact and designated a six-month period ending on 30 October 2024, as envisaged in the Prospectus, during which the Company has the opportunity to remedy the incompliance with the Financial covenants.

In the assessment of the Group's management, based on the information available as of the date of publication of this announcement, the trends in the Group's 2024 financial results are in line with the previously published EBITDA forecast. As disclosed in the financial reports of the Company and the Group, considering the approved budget and business plans for 2024, it is expected that the indicators in question will be met again during the remediation period, barring any significant changes in the business environment which the Group cannot anticipate and/or control (for example, weather conditions affecting the Group’s companies' 2024 harvest).

Contacts:
CFO of AUGA group, AB
Kristupas Baranauskas
+370 5 233 5340

Auga Group Ab (LSE:0IR4)
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Auga Group Ab (LSE:0IR4)
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From Jun 2023 to Jun 2024